Third-quarter revenue for parent company Alphabet, Google, grew 14% from the previous year, led by a rebound in advertising revenue for both Google and YouTube. YouTube brought in $ 5 billion in advertising revenue in the third quarter of 2020 – a sign that advertisers have pulled back their spending because the coronavirus virus earlier this year could return to normal.
YouTube now has more than 30 million music subscribers and premium premium – 35 million, including a free trial – and YouTube TV has more than 3 million subscribers. That is especially strong, since YouTube TV announced a monthly price increase from $ 50 to $ 64.99 in June. And in what could possibly be a sign of the times, views of guided meditation videos on YouTube have increased 40% since March, and DIY masking tutorials have been viewed more than 1billion times, Google CEO Sundar Pichai said in a call with investors to discuss earnings results.
“We are pleased with the extent to which advertisers actually reactivated their budgets in the third quarter,” said Ruth Porat, Chief Financial Officer, Ruth Porat, Chief Financial Officer at Alphabet and Google. of Alphabet and Google, said. She added that it is evidence that consumers are demonstrating strong demand across nearly all verticals. “YouTube’s dramatic growth in watch time allows advertisers to reach audiences they can’t reach on TV.” The company has invested in content censorship to ensure both creators and users on YouTube have a positive experience, Porat said.
Google’s advertising division brought in revenue of $ 37.1 billion, up from $ 34 billion last year. YouTube advertising revenue grew 30% from $ 3.8 billion in Q3 2019.
“This year, including this quarter, shows how valuable Google’s founding product – search – is to everyone,” Pichai said on the call.
This quarter is in sharp contrast to the disappointing second quarter of 2020, where Google’s revenue declined for the first time. This quarter, Google grew again, with revenue of $ 46.2 billion in Q3, up from $ 40 billion a year ago and net income of $ 11.24 billion, up from $ 7.06 billion. la last year.
Google’s “other” division, which includes hardware, cloud services and the Play Store, has $ 5.4 billion in revenue, up from $ 4 billion. Its “other betting” segment – which includes Waymo and Verily – has revenues of $ 178 million, but remains losers for the company, at $ 1.1 billion. That was worse than this time last year.
Google’s Cloud division had $ 3.44 billion in revenue, up from $ 2.3 billion a year ago, and its Search segment had $ 26.3 billion in revenue, up from $ 24.7 billion la. Pichai said customers are increasingly turning to the cloud to “drive efficiency and reduce IT costs”, adding that the future of work is creating “significant growth in demand” for Google cloud products. He added that in the next quarter, Google will separate its cloud division into a separate reporting segment.
The company’s video conferencing platform has 235 million daily meetings and more than 7.5 billion video calls daily, Pichai said.
Pichai also said the company was prepared for a lawsuit filed by the Justice Department last week, accusing the internet giant of having an illegal monopoly on the search and advertising market. “We believe our product is generating significant benefits and we will confidently make our case,” he said. “The focus of our company remains on continuing its work to build a looking product that people love and appreciate.”
Updated on October 29 at 6:09 PM ET: Added details from Alphabet’s call with investors